These pointers will help you raise funds for your startups

Raising funds for a startup isn’t a cake walk. While you may have prepared the best pitch for your business, it may not be suffice to impress your future investors. Sheetal Bahl, co-founder, CEO cum managing director of growX Ventures, a Delhi-based early stage investment firm, tells BI India the four most basic parameters that any investor looks for before funding a start-up.

The A team

No, we aren’t talking about the Hollywood action-comedy flick. We literally mean that the first thing investors look at before deciding to part with the monies is the core team of the company. How good is the team and how well do they know the business they are venturing into is critical parameter for investing in a startup.

Vision

No one likes a company that does not have clarity in vision. Before investing, investors like to understand the future course of action of a startup. Where does the company see itself a year down the line? How does the management want the company to shape up?

Space

The next parameter is the sector of investment. So basically, investors assess the sector in which the startup has been launched. For instance, GrowX Ventures received nearly 50 pitches from startups in the on-demand laundry space, however, refrained from investing any of the startups in this space because of the sudden boom in the sector. “We are interested in this segment but we are waiting for the right time. If we feel the time is right, then we will probably invest in this category,” said Bahl.

Emergency exit

Every investor looks for an easy exit, if unwarranted circumstances arise. Hence, easy exit is a crucial factor for any investor before they zero in on a new venture.